VAT Digital Toolkit for Latin America and the Caribbean: Highlights and Key Recommendations (Executive Summary)
This document provides the highlights and key recommendations from the VAT Digital Toolkit for Latin America and the Caribbean, available at https://publications.iadb.org/en/vat-digital-toolkit-latin-america-and-caribbean. This Toolkit aims to assist tax authorities in the Latin America and Caribbean (LAC) region with the design and implementation of policy reform to ensure the effective collection of VAT on e-commerce activities. VAT is the largest source of tax revenue on average in the LAC region. The main e-commerce VAT challenges relate to the strong growth in online sales of services and digital products to private consumers ("apps", music and movie streaming, gaming, ride-hailing, etc.) and to the exponential growth in online sales of low-value imported goods, often by foreign sellers, on which VAT is not collected effectively under existing rules. This Toolkit provides detailed guidance for the successful implementation of a comprehensive VAT strategy directed at all types of e-commerce. It is designed to help governments secure important VAT revenues and to safeguard an even playing field between brick-and-mortar stores and foreign online sellers. The Toolkit has been produced by the OECD in partnership with the World Bank Group (WBG), the Inter-American Center of Tax Administrations (CIAT) and the Inter-American Development Bank (IDB).